Utilities seeing tax cut told to reduce distribution charges

Utilities seeing tax cut told to reduce distribution charges

May. 17, 2018

https://www.apnews.com/9f33f9ec5a62473292cec78212ac541e

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HARRISBURG, Pa. (AP) — The Pennsylvania Public Utility commission is ordering 17 utilities to lower distribution rates as a result of federal tax-cutting legislation signed in December by President Donald Trump.

The commission said Thursday that the electric, natural gas, and water and wastewater utilities seeing lower tax liabilities will start reducing rates July 1.

The total reduction is about $320 million over 12 months, or about 4 percent of the $7.8 billion in distribution charges the agency previously had authorized the 17 utilities to charge for the year.

The distribution charge is distinct from the usage charge. The reduction varies by utility, and is expected to range from 0.56 percent to 8.55 percent off a customer's distribution charge.

Seven other utilities currently have rate cases in front of the commission.